A nano-cap diagnostics inflection the market hasn't noticed
First Positive EBITDA. 30% Revenue Growth. 1.6x EV/Sales.
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A tiny cancer diagnostics company has quietly turned cash-flow positive for the first time in its history.
$43 million market cap.
Revenue up 30% year-over-year.
First-ever positive EBITDA.
First-ever positive operating cash flow.
Trading at 1.6x EV/Sales while diagnostic peers fetch 3-5x.
And the market hasn’t caught on yet.
This is a business generating real recurring revenue from oncology testing - the kind of revenue that comes back month after month because oncologists keep sending samples.
The company just exited a messy period. A cyberattack on their billing vendor disrupted collections for months. Cash got tight. Investors fled.
But here’s what matters: that’s over now.
Billing normalized. Cash flow swung positive. And the underlying business is scaling with visible operating leverage.
Gross margins have climbed from 43% to 46%. Management says they’ll exceed 50% by mid-2026.
Each incremental test falls almost entirely to the margin because the lab infrastructure is already in place.
This is exactly the kind of setup that creates mispriced optionality.
The downside appears capped - it’s already profitable, already cash-flow positive, already growing.
The upside? A recurring diagnostics platform with expanding margins, scaling volumes, and the potential to re-rate as the market recognizes consistent execution.
In my opinion, this has the asymmetric profile worth exploring.